Erp as Software as a Service (Saas) for Smes

ERP as Software as a Service *(*SaaS*)* for SMEs Table of Contents Page Abstract The main barriers for implementing ERP systems in SMEs were constraints in terms of resources and information, implementation time escalations, poorly defined organisational structures, weak formalisation of procedures or processes, unclear and also confused understanding amongst the employees and management. There are various methods to overcome the barriers of implementing ERP solutions in SMEs. This include coming up with a realistic value-adding processes required to be incorporated in the proposed ERP system, providing effective education on ERP systems, making sure as a vendors, they do not just provide lip service and to involve everyone in the whole system’s lifecycle. Software-as-a-service (SaaS) is an online delivery of softwares (Dubey & Wagle 2007). The model is uncomplicated and appealing wherein companies signs up to the use the solution which is hosted by the vendors that sells and/or develops the software rather than spending large sums on an application such as ERP and Customer Relationship Management (CRM) and installing this software on individual machines (Dubey & Wagle 2007; Banham 2008). All of the major software vendors are now offering its solution on SaaS model basis – SAP, Microsoft, IBM, Oracle and Salesforce.com are all staking their claims. Introduction SME Definition “companies with less than 250 employees, _total assets under 27 million Euros,_ independent privately held_ and _ _owner-managers or their families manage the company personally (Loecher 2000; Sogorb 2002)”. _ Why ERP vendors are focusing on SME’s Barriers to implementation of ERP systems in SME’s It was found that the main barriers for implementing ERP systems in SMEs were: constraints in terms of resources and information, implementation time escalations, poorly defined organisational framework, informal and

References: Jacobson, S, Shepherd, J, D’Aquila, M & Carter, K 2007, ‘The ERP Market Sizing Report, 2006–2011’, AMR Research, viewed 19 October 2009, http://www.gtm.sap.com/solutions/business-suite/erp/pdf/AMR_ERP_Market_Sizing_2006-2011.pdf